HB341 Alabama 2011 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Johnny Mack Morrow
Democrat
Session: Regular Session 2011
Title: Recreational vehicles, franchise agreements by dealers and manufacturers and distributors, designated area of sales responsibility required, procedures for termination, cancellations, non-renewal, or alteration of agreements specified, repurchase of inventory, warranty service agreements, Motor Vehicle Franchise Act not to apply to any recreational vehicle manufacturer and dealer agreement, Sec. 8-20-2 am'd.
Summary: HB341 creates an Alabama framework governing RV manufacturers, distributors, and dealers, including required agreements, exclusive sales areas, termination rules, inventory repurchase, warranty rules, mediation, and exemption from the existing Motor Vehicle Franchise Act.
What This Bill Does
It requires RV manufacturers and distributors to sign a written manufacturer and dealer agreement with each dealer selling RVs in Alabama and to designate an exclusive area of sales responsibility. It establishes rules for terminating, canceling, or changing those agreements, including notice and cure periods, and requires repurchase of certain inventory and parts if a contract ends without cause. It also sets warranty service obligations, allows indemnification between warrantors and dealers, bans coercion and binding arbitration, requires mediation for disputes, and exempts RV agreements from the current Motor Vehicle Franchise Act.

Who It Affects
RV dealers in Alabama must sign the required agreement, operate within an exclusive sales area, may receive repurchase rights if terminated without cause, and participate in ownership-change rules and warranty-related requirements.
RV manufacturers and distributors must enter and enforce agreements, designate and potentially revise exclusive sales areas, follow termination and repurchase procedures, provide warranty terms and indemnification, and comply with mediation and anti-coercion provisions.

Key Provisions
Manufacturers/distributors must sign a written manufacturer and dealer agreement with each dealer, including an exclusive area of sales responsibility.
Area of sales responsibility is exclusive to the dealer and changes require mutual consent for at least one year, with conditions for adjusting areas if market penetration is threatened.
If terminated without cause, the manufacturer/distributor must repurchase certain inventory and parts at specified prices and timelines (new untitled RVs at 100% net invoice cost, undamaged accessories at 105%, certain equipment at cost).
Ownership transfer rules require notice and allow the manufacturer/distributor to object based on specified criteria (felony conviction, bankruptcy, lack of license or credit, prior termination, etc.).
Warranty service obligations are defined, including compensation, timing, documentation, audits, and mutual indemnification between warrantors and dealers.
Coercion and binding arbitration are prohibited; disputes must be mediated, with procedures and potential court relief available; and RV agreements are exempt from the Motor Vehicle Franchise Act.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Motor Vehicles